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West Forest Capital

Long Island DSCR Loans

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If you you’re looking for a DSCR rental loan in Long Island, we have you covered.

West Forest Capital is a leading Long Island DSCR rental loan provider, financing real estate investments up to $3 million.

What is a DSCR Rental Loan?

  • A DSCR (Debt Service Coverage Ratio) rental loan is long term real estate financing – often up to 30 years
  • Personal income and personal credit are not significant factors in the underwriting
  • The loan is based off the property value, and the income it generates
  • Fast closing, can be done within 2-3 weeks

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(Investment Properties Only)

Property Types

Lending Parameters

Loan Size$100,000 - $3,000,000
Loan to ValueUp to 80%
Primary ResidenceNot accepted
Rental statusRented preferred but not required (can use market rents)
TermUp to 30 years
FormatFixed or Variable available
RateVaries by product, correlation with Treasury Rates
PointsTypically 2%

Counties Covered

We provide DSCR rental loans in the following counties in Long Island:

  • Nassau County
  • Suffolk County

Recently Funded Bridge Loans

Why Use a Long Island DSCR Rental Loan

  1. If you own your own business. Business owners have many expenses and unpredictable income.  Your business might have significant income, but you personally might not.  Since a DSCR loan does not require personal income, it’s ideal for business owners.
  2. If you have imperfect credit. To qualify for a DSCR rental loan, the underlying customer metrics, such as FICO score, are less important than the actual asset – your rental property.  Typically, if your FICO is in the mid-600s or above, we can work with you.
  3. Fast approval process. DSCR rental loans have a much faster approval process (2-3 weeks) than traditional loans, allowing investors to secure financing quickly and take advantage of investment opportunities as they arise.
  4. Flexible Repayment Terms. DSCR rental loans come with flexible repayment terms. This can be especially beneficial for investors who have multiple rental properties and need to manage their cash flow effectively.  Examples of options are 30 year fixed rate or a 5/1 ARM (which simply means the rate is fixed for 5 years and then resets every year going forward; there are also 7/1 ARMs, and so on).
Long Island DSCR Loans
Long Island money loans

Why Choose a Long Island DSCR Rental Loan

Investing in rental properties on Long Island presents a great opportunity to reap the long-term benefits of real estate investments: rising rents, historically steady appreciation, and being able to depreciate your property for tax purposes. For savvy real estate investors, securing financing is a pivotal step in acquiring and maintaining a profitable rental property portfolio. Nevertheless, navigating the search for the right loan can be challenging, particularly when seeking a loan based primarily on property value and investment quality rather than relying on personal FICO scores or individual wages/income. DSCR rental loans on Long Island offer a practical avenue for property financing without all of the document requests and stringent prerequisites often associated with traditional bank loans. Not only do DSCR rental loans expedite the process, but they also enable investors to secure long-term financing of up to 30 years at favorable rates – a loan term not easily accessible through banks, which typically offer their most attractive terms on shorter-duration loans, ranging from 5 to 10 years. Long Island has many appealing real estate types across its diverse regions. The three largest towns, Hempstead, Brookhaven, and Islip, cater to a bustling lifestyle with a growing corporate base, and in addition to single family homes and apartments, commercial real estate opportunities are plenty. As companies establish their roots and inventory remains low, the demand for housing and commercial space has reached unprecedented heights. For those focused on a more suburban feel, locales like Bell Port, Patchogue, Port Washington, and Commack offer just that. These towns often attract renters looking for single-family homes, which results in a strong demand for rental properties in areas where traditionally home ownership dominated the housing landscape. The strength of Long Island’s economy has been consistent over time, demonstrating growth and low unemployment. The influx of permanent residents, drawn by the region’s allure and proximity to NYC, ensures a stable population trend that bodes well for rental income with considerable upside – a great match for a DSCR rental loan.
Long Island real estate, renovation rehab loans

Getting a DSCR Rental Loan in Long Island

Obtaining a DSCR Rental loan on Long Island is a far more straightforward process compared to securing a traditional bank loan. Conventional financial institutions often impose stringent criteria for real estate loans, and these requirements have only become more stringent with time. This is especially true for individuals with less-than-ideal credit histories or diverse real estate portfolios. Unlike banks, which thoroughly scrutinize personal income and credit scores, Long Island real estate investors opting for DSCR rental loans enjoy the advantage of individual property evaluation. This approach significantly reduces the impact of personal credit history or property ownership count on loan approval. Moreover, the loan approval process is fast, with DSCR loans on Long Island often in two or three weeks.
Long Island money Loan

Asset Based Lender Providing DSCR Rental Loans in Long Island

As a specialized asset-based lender in Long Island, we prioritize providing loans based on real estate assets that generate a net operating income (NOI) over 1.1x the property’s debt costs. We understand the entrepreneurial spirit of real estate investors. We know that consistent monthly income may not always be the norm. Our goal is to streamline the lending process, sparing you the burden of extensive documentation related to income and bank statements. Whether you’re seeking your first rental property or looking to expand an existing portfolio, our support is assured throughout the process. Are you ready to embark on this exciting journey? Don’t hesitate – reach out to us today to explore the depths of the DSCR rental loan program, custom-tailored for your investment property on Long Island. Let us be your trusted partner.


Also known as a Debt Service Coverage Ratio loan, a DSCR loan is a type of real estate mortage loan that can be used to purchase or refinance a property. They differ from a traditional mortgage loans in two primary ways:

They are intended for investment properties only and they are based on the value and rental income potential of the property rather than the income of the borrower.

You are typically eligible for a DSCR loan if the below conditions are met:

  • The property is a condo, single-family residence, a duplex, triplex, quadplex, or multi-family
  • Investment property, cannot be primary residence
  • The property does not require rehab
  • The property is an LLC rather than a personal name (can be transferred to an LLC upon closing)
  • Insurance and taxes are up to date

Since DSCR loans are primarily lent on the asset rather than the borrower’s credit or income, FICO requirements are limited.  Typically, a score above 660 will work.

Additionally, since the property must be able to be able to produce income, vacant land, or primary residences are not permitted.

The minimum DSCR ratio requirement is typically 1.1x. DSCR ratios are calculated by dividing the Net Operating Income (NOI) by the Property Debt Service. The NOI is equal to the total rent minus taxes and insurance, while the Debt Service is equal to the mortage payment (principal plus interest).

DSCR loans make it possible for borrowers with non-W2 income and other non-traditional income sources to receive a loan to purchase real estate since they are based on the value of the property and the property’s ability to generate rental income and cashflow. As mentioned, these types of loans are not based on personal income, making the borrower’s income irrelevant.

There are several benefits which make DSCR loans superior to bank loans or other real estate financing products.  First, DSCR loans make it possible for borrowers with non-traditional forms of income to obtain a mortgage. Second, even if you can satisfy a bank’s requirements for income, DSCR loans allow borrowers with credit issues to secure a mortgage.  Finally, DSCR loans are simply much faster to get – they can be approved within as little as two weeks, a significantly shorter amount of time than a traditional mortgage loan.

The most common misconception about DSCR loans is that borrowers assume the qualification terms are the same for these types of loans as they are for traditional mortgage loans. But this is incorrect. Unlike mortgage loans, DSCR loans do not have any income requirements, and much fewer credit requirements. This makes it more likely for borrowers to receive funding for real estate properties that they otherwise would not qualify for.

One potential drawback to a DSCR loan can be the down payment requirement upon purchase, which can sometimes be close to 20 or 25% of the purchase price. A second drawback is that the mortgage rates tend to be a bit higher than traditional mortgage loans.  And finally, unlike traditional mortgage loans, DSCR loans are usually provided by smaller lending companies, so it’s important to understand the loan and be comfortable with the company providing it.

A lender evaluates the borrower’s ability to repay a DSCR loan based on the property’s DSCR ratio. As mentioned earlier, this metric takes into account the property’s NOI (Net Operating Income) and the total debt service.

The NOI is the income amount expected to be generated by a property after all operating expenses have been deducted (utilities, maintenance on the property, management fees, etc.).

The total debt service includes both the principal amount and interest payments due on the loan.

When both are taken into consideration, the ratio often needs to be at least 1.1x to show lenders that the borrower will have enough cash flow coming from the property to make the mortgage payments on the loan.

Borrowers can improve their chances of getting approved for a DSCR loan by having cash on hand to cover the down payment amount in the event of a purchase (which can be close to 20-25% of the purchase price).  (It’s worthwhile to note that borrowers don’t need to come up with a down payment when refinancing into a DSCR loan).  They also can improve their chances of being approved by having the property held in an LLC, rather than in the borrower’s name. The type of property and its use will matter as well – investment properties such as condos, single-family residences, multi-family homes, and some commercial properties will likely be easier to approve than land, primary residences, or properties for industrial use.

Borrowers can use a DSCR loan to expand their business by purchasing their first rental property and additional rental properties thereafter.   In fact, when using DSCR loans, there is no limit on the number of properties that can be acquired, so long as each property is able to produce cash flow with an acceptable DSCR ratio (typically 1.1x or more).  Before applying for a loan, borrowers should have enough cash to cover the down payment on the property.  They should also evaluate the costs associated with each rental purchase, including utility fees, any potential HOA costs, management fees, and maintenance expenses.   These costs, plus the mortgage payment should be compared against the actual or potential rents to make sure there is sufficient coverage.  In the event of refinancing, a DSCR loan can also be used.  In this case, the borrower should make sure that the maximum loan amount can be covered by the same calculation.

West Forest Capital is the fastest DSCR Loans Lender in Long Island

Long Island DSCR Loans Loan Lender

We fund DSCR Loans in 2-3 weeks.
Commercial and industrial loans are funded in two weeks.

If you are looking for a Long Island DSCR Loans Lender, give us a call.

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